Supporting Customers Throughout the Product and Service Lifecycle

Every customer is an individual and should be treated as such. There is no ‘one size fits all’ solution to good customer service, as each customer will have different needs and expectations. Under the Consumer Duty, firms must enable and support customers to pursue their financial objectives throughout the customer journey and lifecycle of a product or service.

The product and service lifecycle is the period of time from when a product is first introduced to customers, until it eventually decreases in demand and is removed from the market. It typically includes four key stages:

Introduction - The first time a new product or service is introduced to potential customers.

Growth - The product or service is growing in demand.

Maturity - The product or service is established in the industry and sales stabilise.

Decline - The product or service decreases in demand and sales drop due to changed customer behaviour.

There are many ways you can support a customer throughout each stage of the product and service lifecycle:

Introduction Stage

When introducing the new product or service, avoid using too much jargon or complicated terms, as it may confuse or intimidate new customers. You should also explain to customers what is covered in the product or service and how it can be beneficial to them, as well as the costs and risks, so that they can make effective decisions. Ask if they fully understand the information given to them and if they have any further questions. 

Growth and Maturity Stage 

As the product or service grows in demand and becomes established in the market, it is essential that you understand the details of what you are selling. Customers will feel more reassured with someone who is knowledgeable and confident about their product/service.

Having a range of communication channels will allow customers to choose how they engage with you. Demonstrating that you can work flexibly with different methods of communication will make customers feel more comfortable to reach out and ask for support.

You should know the details of your customers, such as their support and purchase history. Using a customer’s name in face-to-face meetings and emails gives them a more personalised customer experience. Feedback should be encouraged, as it is vital to improving the product or service and shows customers that their views matter to the firm.

Decline Stage

When, or if, the product or service is due to be discontinued, you should inform the customers using it as soon as possible and make the cancellation process swift and easy.

If the customer would otherwise wish to continue with the product/service, you can suggest an alternative. You should not pressure the customer into purchasing the alternative, but instead explain why it relates to the discontinued product/service and let them make an informed decision.

Users of the Development Zone can access a range of related modules through our Content Catalogue, such as Customer Service: The Channels of Communication and Consumer Barriers within the Financial Services. 

For those not currently using the system, you can find out more and request a free 14-day trial here: https://mydevelopment.zone/#getStarted